According to Eric Balchunas, a high-fee active fund showing less than 40% active share indicates near-benchmark positioning that may not justify premium fees, source: @EricBalchunas on X. Active share below roughly 60% is widely used to flag closet indexing, which raises the hurdle to outperform after costs, source: Morningstar Research. Most high-fee active equity funds underperform benchmarks net of fees over multiyear horizons, reinforcing the risk for holders of low active share products, source: S&P Dow Jones Indices SPIVA U.S. Scorecard 2024. These dynamics tend to redirect flows toward low-cost index ETFs and alternative exposures like Bitcoin ETPs, both of which recorded robust net inflows in 2024, source: Investment Company Institute and CoinShares Digital Asset Fund Flows 2024.